Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A) The effect of increasing a firm's use of financial leverage is to decrease the volatility of the firm's earnings.
• B) The effect of increasing a firm's use of financial leverage could be either to increase or decrease the volatility of the firm's earnings depending on how much leverage is utilized.
• C) The effect of increasing a firm's use of financial leverage is to increase the volatility of the firm's earnings.
• D) None of the statements are correct.

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Definitions:

Job Content

The specific tasks, responsibilities, and duties that make up a particular job.

Working Conditions

The environment in which an individual works, including aspects such as safety, amenities, workload, and physical conditions.

Motivator-Hygiene Theory

A theory of job satisfaction proposed by Frederick Herzberg, arguing that factors leading to job satisfaction (motivators) are different from those leading to dissatisfaction (hygiene factors).

Job Enrichment

Enhancing a job by adding tasks that increase responsibility, autonomy, and opportunities for personal growth.